Solar power advocates slam new California proposal to reduce subsidies

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Solar power advocates slam new California proposal to reduce subsidies
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The proposed policy would reduce payments granted to solar customers for the excess power they generate — a policy known as net-energy metering.

The proposed policy would reduce payments granted to solar customers for the excess power they generate — a policy known as net-energy metering — and add monthly charges for customers to connect to the grid.

The California Public Utilities Commission said the proposed changes, in a decision known as NEM 3.0, are meant to encourage consumers to install battery storage systems alongside solar panels, so they can store the excess power generated by solar panels and feed it back to the grid when it's most needed.

Southern California Edison, one of the state's largest utility companies, said the proposed decision is a "meaningful step toward modernizing California's rooftop solar program." Solar systems vary significantly, but the current payback period is between four and five years, according to research firm. CPUC said that the new proposal will lead to a 10-year payback period for solar plus storage systems. The Solar Energy Industries Association said it's working on its own calculation to determine the payback period under the new policy, and argued that the proposal would create the "highest solar tax in the country and tarnish the state's clean energy legacy.

Solar executives also weighed in, with Sunrun's vice president of public policy Walker Write saying the proposal would "impose the highest discriminatory charges on solar and energy storage customers in the U.S., putting rooftop solar and batteries out of reach for countless families in California just as more households are demanding that the state do more to combat climate change and provide them with reliable, sustainable energy.

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